Musk Loses Trillionaire Status; Apple Hikes Mac, iPad Prices

In a dramatic week for the technology sector, Elon Musk has lost his trillionaire status after a major tech sell-off erased billions from his fortune, Apple announced significant price increases on Macs and iPads, and California Governor Gavin Newsom called for a national billionaires’ tax — three developments linked by the far-reaching economic effects of the artificial intelligence boom.

Musk’s Trillionaire Status Reversed

Just two weeks after becoming the world’s first trillionaire, Elon Musk’s net worth has fallen to $946 billion, according to the Bloomberg Billionaires Index as reported by Fox Business. The decline from roughly $1.11 trillion in less than 14 days came as SpaceX and Tesla shares tumbled during a broader tech sell-off driven by investor caution about the long-term profitability of artificial intelligence.

SpaceX, which went public on June 12 in the largest IPO in history, saw its shares fall more than 30% from their June peak. On June 22 alone, the stock dropped 16%, wiping about $240 billion from Musk’s fortune. Tesla shares fell nearly 6% the following day, compounding the losses. Musk’s net worth had peaked at approximately $1.32 trillion on June 16 after SpaceX shares rose to $225.64.

Despite the losses, Musk remains the world’s richest person by a wide margin. Larry Page ranks second at $296 billion, followed by Sergey Brin ($275 billion), Jeff Bezos ($257 billion), and Michael Dell ($223 billion).

Apple Raises Prices on Macs and iPads

Apple announced price increases across its Mac and iPad product lines on Thursday, citing an “unprecedented” memory chip shortage driven by the AI boom, according to AP News.

“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly,” Apple said in a written statement.

The new pricing includes the MacBook Neo at $699 (up from $599), the 512GB MacBook Air at $1,299 (up from $1,099), and the 1TB MacBook Pro at $1,999 (up from $1,699). iPad prices also rose, with the 128GB iPad Air now $749 (up from $599) and the 256GB iPad Pro WiFi at $1,199 (up from $999).

IDC analyst Nabila Popal warned that the increases may be just the beginning. “I think the days of $50 price increases are over,” Popal said, suggesting iPhone Pro and Pro Max hikes could reach as much as $200 later this year. Apple shares fell 4.5% to $279.88 on the day of the announcement.

Newsom Calls for National Billionaires’ Tax

California Governor Gavin Newsom on Friday called for a national “billionaires’ tax,” outlining his proposals in a Substack post titled “It’s time for a national billionaires’ tax and a new social compact,” as reported by AP News.

Newsom proposed a minimum tax on anyone with a net worth above $100 million, making it illegal for the wealthy to borrow against stock portfolios tax-free, implementing new inheritance tax rules, and raising corporate tax rates to pre-Trump levels. He also proposed that the U.S. government should own a stake in AI companies through a “national public equity fund.”

“We need to ensure every American owns a stake in the future being built by AI through a national public equity fund that takes a major stake in the new economy,” Newsom wrote.

Notably, Newsom opposes a California ballot measure that would impose a one-time 5% tax on the assets of billionaires living in the state, backed by an influential health care union. He argues the state-level tax would drive billionaires out of California, eroding the tax base. “You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do,” he wrote.

The AI Boom’s Ripple Effects

These three stories are deeply interconnected through the rapid expansion of artificial intelligence. The same AI enthusiasm that drove SpaceX’s historic IPO and briefly made Musk a trillionaire has triggered a major market correction as investors question valuations. The AI boom has also created an extraordinary surge in demand for memory chips, forcing Apple to raise consumer prices. And the concentration of wealth generated by the tech sector has prompted Newsom’s political response, which is widely seen as an early framework for a potential presidential campaign as he approaches the end of his term in January 2027.

Newsom’s embrace of a wealth tax, despite his reputation as a moderate on tax policy, signals a notable shift in the Democratic political landscape since Elizabeth Warren’s 2020 campaign centered on a 2% wealth tax struggled for traction.

What to Watch

Investors will be watching whether the tech sell-off deepens or stabilizes in the coming weeks. Consumers face the prospect of further price increases, particularly on iPhones expected later this year. And the California billionaire tax ballot measure, set for a vote in November 2026, will test whether Newsom’s federal-first approach to wealth taxation gains political traction.